Perception on justice, trust and tax compliance behavior in Malaysia

By Sellywati Mohd Faizal, Mohd Rizal Palil, Ruhanita Maelah, Rosiati Ramli. 2017

96 citations recorded by the source corpus.

Abstract The relationship between justice and trust with tax compliance behavior in Malaysia was studied. Previous studies have acknowledged the perception that justice does have an impact on tax compliance. This study distinguishes justice into procedural justice, distributive justice, and retributive justice. Therefore, this study examined the effect of these three types of justice on tax compliance. Trust also influences the act of tax compliance and it also has a relationship to the element of justice. Perceptions from individual taxpayers were gathered using questionnaires from previous studies. The findings suggest only procedural justice and trust affect tax compliance and procedural justice was positively and significantly correlated to trust. However, trust does not mediate the relationship between justice and compliance. This research will contribute to the tax literature with widened scope on justice in Malaysia.

Subfields: Accounting, Economics and Econometrics, Economics & Operations Research, Social Sciences & Humanities

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Citations in the corpus

• Saving Face: Investigating the Ethical Concerns of Facial Recognition Auditing (2020, background): “Instead of simply looking at whatever financial documents were submitted, auditors instead evaluated the company’s adherence to a tax compliance process [17, 36], by auditing the companies’ internal practices and documentation development processes.”
• Closing the AI accountability gap: defining an end-to-end framework for internal algorithmic auditing (2020, background): “…is a repeatedly observed phenomenon in tax compliance auditing, where several international surveys of tax compliance demonstrate that a fixed and vetted tax audit methodology is one of the most effective strategies to convince companies to respect audit results and pay their full taxes [22, 53].”